Lee Kuan Yew had said in 2013, two years before he left the world: 'If America`s politicians, for example, decide, perhaps out of electoral calculations, to impose a prohibitive tax on the Chinese for selling their goods under cost price, there will be some form of retaliation. Once you go down that route, it would not be long before other trading partners, including Europe and Japan, find themselves pulled into the conflict and having to consider similar measures. Then the whole trade system goes down by several degrees. The world will end up poorer overall.'
That is the trajectory of things. The free market will not be a free market, and the whole trade system will not remain the same.
But the point is, whether this is a long-term policy of Donald Trump, or a temporary one. He must have study the situation thoroughly. Otherwise, he would not have taken away the TPP. He is a promoter of free trade. He must have considered the case completely.
This is another thing needed waiting, and one will see if it is a long-term measure, or a temporary one.
9041 Is it a long-term policy to tax Chinese goods? 20170308